Your eyes lock on your computer screen — your head swimming with RFPs and the lofty funding goals your CEO touted at your last development meeting.
Your fingers flash across the keyboard as you ask the all-knowing sage, Google,
“How do you win federal grants?”
The screen loads answers that are both varied and specific, nuanced and broad, causing more confusion than clarity.
Want the simple, step-by-step guide to winning federal grants?
“Of course!” You’re thinking.
Well, winning federal dollars boils down to having the plan, people and skills you need to succeed.
Step 1. A Winning Plan
Planning will be the #1 determining factor as to whether or not you win funding. A good plan ignites your bottom line, but a poor or nonexistent plan will hurt your ROI and hinder your mission.
Consider this scenario:
You’ve won $150K in funding (congratulations!).
But because of a steep learning curve or no capacity for deep research, you’ve expended thousands of dollars in staff and admin costs to secure that funding, having submitted poorly constructed, misaligned, and ultimately, rejected proposal after proposal.
And you're overwhelmed fundraising team inadvertently left out the cost of increased overhead when they decided to pursue each grant (many grants only cover a certain portion). And now you need to hire another person to manage the award.
You’re pained when the finance team confirms how much money you lost on your $150K award.
This story illustrates the many pitfalls you’ll need to avoid when seeking government funding.
To increase your chance of success with federal funds, focus on these four areas of planning to ensure the highest ROI:
1. Know the Total and Hidden Costs of Your Project
Collaborate with your finance team to uncover the true cost of your project, including indirect costs. Factor in the cost of post-award management activities such as program evaluation (typically, this can be 10% of your total project cost) or reporting. Plan for this total project cost when you set your annual fundraising priorities.
2. Only Target Opportunities with the Highest Chance for Success
Decrease the amount of time you spend on low-priority opportunities. Figure out your likelihood of winning before you apply, prioritizing opportunities that fit your mission and program like a glove and for which there is less competition/more funding available.
3. Connect with the Funder Before Applying
Whenever possible, meet with each funding agency's staff. Learn what the program director cares about and tailor your initial project pitch so that you highlight what would interest them most. Make sure your project is something they are excited about and that they feel it is a good fit for the RFP.
4. Close Any Programmatic or Organizational Gaps
Are there any partnerships you should pursue? Do you have sufficient documentation of broad community support, including enough letters of support or commitment for the project? Do you have a clear, practical evaluation plan? Are there any concerns about your project's scope of work that the program director mentioned?
Do everything to improve your chance of success.
Once you have gone through these steps, create a funding strategy with the grants you intend to pursue over the next 12-18 months.
Planning will help you avoid costly mistakes, forgo mission drift and the shotgun approach to funding, and reduce overhead.
Step 2. A Winning Team
Now that you have the plan, it’s time to get the people you need for success in place.
Ask yourself:
Who do I need to accomplish the goals of the project?
Who do I need to complete the grant proposal?
Funders will closely examine your implementation team. Have you clearly spelled out for the funder why each person is qualified to fulfill their role? Do you need to hire additional specialists or reassign roles?
Are your goals realistic for the staffing you have? E.g., are you running at 70% staff capacity, but promising 100% of your project’s goals? Set realistic SMART goals, ideally a bit lower than you think you can meet — that way, you can report on the grant that you exceeded your expectations, which will help you secure more funding in the future.
Who will be handling the program evaluation? Will you need to hire a temporary consultant? Can your finance team handle reporting? If your internal team does not have experience in this area, before you submit the grant, find a consultant or CPA who handles federal post-award management.
Does your fundraising team have a dedicated grants specialist? If not, you will need to designate responsibilities and deadlines.
Federal grants can take on average 100 hours to complete. And you will also need time for research and for building rapport with funding staff.
Does your team have the technical background necessary to apply for the funding you have identified?
If not, you may pay the cost of a steep learning curve. Consider hiring a consultant who specializes in your industry or the federal agency from which you are seeking funding.
Step 3. The Skills You Need to Win
Do you know the top reasons why proposals are rejected?
These boil down to:
The proposal does not exactly align with the funder’s priorities
The applicant did not begin by speaking with the funder
The applicant did not follow directions
The budget’s math does not add up
The proposal itself was poorly written and illogical
Having these skills on your team will help you avoid these critical errors:
1. Strategic Planning
The RFP will spell out what the required activities are. You will want someone with a basic background in strategic planning who can gauge if your organization can implement these activities, helping you set realistic goals. This person will also identify areas that your organization will need to strengthen to be the most competitive (e.g., being able to craft a sound sustainability section).
2. Deep Understanding of the Funder’s Priorities and Inner Workings
The funding agency can provide key insights into your project’s fundability. Sometimes the difference between winning and losing is knowing what to ask and who to ask. An experienced professional can navigate these conversations or provide insights on how to win funding from each funding agency.
3. Project Management
The proposal lead will need to manage multiple moving parts, ensuring that every detail makes it into your workflow. They will also need to allow enough time for reviewing errors and for submitting the proposal early.
4. Basic Accounting and Financial Skills
Some reviewers will pay more attention to the budget and budget narrative than they do to any other part of the proposal.
Having someone with a basic understanding of accounting and finance and a clear understanding of the funder’s requirements will help you create a budget that is reasonable, clear, accurate, aligned with your organization’s funding goals, and that paints a compelling case for your project.
5. Advanced Communication Skills
From power words to behavioral economics to storytelling, there are several tools a grant writer can use to paint a clear, memorable, compelling case for funding.
A well-written, persuasive narrative is crucial, especially as reviewers read hundreds of proposals.
Yours needs to be the one they remember, the one they defend at every panel, the one they fight to get funded.
Conclusion
Federal dollars can be time-consuming and taxing to secure.
But with a strategy and the right team, you can streamline this important aspect of your fundraising—
helping you secure the resources you need to ignite your impact.
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